Student Unions Demand Transparency as NSFAS Funding Increases

Student Unions Demand Transparency as NSFAS Funding Increases. The National Student Financial Aid Scheme (NSFAS) is set to receive a significant funding boost in 2025. However, South African student unions are raising concerns about financial mismanagement and the need for greater accountability to ensure that students truly benefit from this increase.

NSFAS Funding Increase

Finance Minister Enoch Godongwana has announced a R1.8 billion increase in the NSFAS budget, raising total funding to R55.4 billion. While this financial injection is a positive step towards expanding access to higher education, concerns about the effective use of these funds remain prevalent.

Keamogetswe Masike, President of the South African Student Federation, has reiterated the importance of strict oversight to prevent financial mismanagement. Masike expressed concern that NSFAS has previously been plagued by corruption, administrative inefficiencies, and financial misappropriation, which have hindered students’ access to their rightful financial support.

“Over the past two years, we’ve seen executive officials at NSFAS using public funds as personal resources. This must end,” Masike stated, emphasizing the need for transparency and ethical leadership.

History of Administrative Challenges

The NSFAS has faced increasing scrutiny over its inefficiencies. Former Higher Education Minister Blade Nzimande dismissed the previous NSFAS board due to concerns over:

• Delayed student allowance payments, causing financial distress for students.
• Corruption allegations involving the former CEO.
• Failure to act on recommendations from the Werksmans Report, which revealed irregularities in service provider contracts.

These past failures have led to recurring issues, including delays in student funding allocations, leaving many students in limbo at the beginning of each academic year.

New Leadership, New Hope?

To address these long-standing problems, the government has taken decisive action by appointing a new NSFAS board and acting CEO Wassiem Carrim. Additionally, Minister of Higher Education Nobuhle Nkabane has called for a complete overhaul of NSFAS’ operations to ensure efficiency and fairness.

“When you step into this organisation, turn it around. Review the culture, review the strategy, and ensure that no student is left behind,” Nkabane urged.

Parliament has also expressed confidence in the new leadership, noting that three board members and the CEO have Chartered Accounting backgrounds, a move expected to strengthen financial oversight and governance.

Ensuring Effective Implementation of NSFAS Funds

One of the immediate challenges facing NSFAS is the completion of its closeout project, which aims to clear outstanding student payments. To address this, NSFAS issued a circular on 31 January 2025, instructing public institutions to allow NSFAS-funded students to register without delays.

This move is seen as a positive step towards restoring trust in the system and ensuring that students do not suffer due to administrative failures. However, student unions remain watchful, stressing that increased funding must translate into real improvements in disbursement efficiency, student support, and financial accountability.

Call for Greater Oversight and Student-Centric Policies

While the funding increase is a welcome development, it is not a solution in itself. Without proper oversight, the additional funds may not reach those who need them most. Student organisations have urged the government to prioritize student welfare by:

• Implementing transparent financial tracking systems.
• Holding NSFAS executives accountable for mismanagement.
• Ensuring that allowance disbursements are timely and reliable.

NSFAS remains a critical pillar in South Africa’s higher education funding landscape, supporting thousands of students in universities and TVET colleges. The success of this funding boost will depend on the government’s ability to implement strict accountability measures and ensure that corruption and inefficiencies do not derail student funding efforts.

Conclusion

The increase in NSFAS funding is a much-needed intervention to expand access to higher education in South Africa. However, the ultimate success of this initiative lies in responsible fund management, student-focused policies, and corruption-free administration.